Monday, January 17, 2011

Amazon Will Control Android App Store Pricing

Amazon.com's new Android App Store is interesting for a couple of reasons. It would be a new and potentially influential independent app store, with huge brand name recognition.

Amazon at least potentially could play a role in curating mobile applications in way slightly different from what Apple has been doing at its own app store. Apple approves all apps. Amazon will do so as well, but says it will retain the right to determine the selling price for a paid app. That is consistent with Amazon's policies for other key products, such as Kindle e-books.

But that policy would be different from the model prevailing at most other app stores, especially the Android and iPhone stores.

It's hard to know in advance what impact such policies might have, but Amazon is an experienced retailer intent on applying sales knowledge to mobile apps as well. There is bound to be some friction, with some developers, over the control of retail pricing. On the other hand, Amazon and Apple have found good success with other products able to establish a consumer expectation of prici

Whether that can be done with applications of many types remains to be seen, but Amazon's approach will be instructive.

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